STATE BOARD OF ACCOUNTS 302 West Washington Street Room E418 INDIANAPOLIS, INDIANA 46204-2769 EXAMINATION REPORT OF WHITLEY COUNTY, INDIANA January 1, 2009 to December 31, 2009
TABLE OF CONTENTS Description Page Officials... 2 Independent Accountant's Report... 3 Financial Information: Schedule of Receipts, Disbursements, and Cash and Investment Balances... 4-5 Notes to Financial Information... 6-8 Supplementary Information: Schedule of Capital Assets... 9 Schedule of Long-Term Debt... 10 Other Report... 11 Exit Conference... 12-1-
OFFICIALS Office Official Term Auditor Linda J. Gerig 01-01-07 to 12-31-10 Treasurer Lisa A. Richmond 01-01-09 to 12-31-12 Clerk Cindy Doolittle 01-01-08 to 12-31-10 Sheriff Mark E. Hodges 01-01-07 to 12-31-10 Recorder Rosemary Brown 01-01-08 to 12-31-10 President of the Board of County Commissioners Tom Rethlake 01-01-09 to 12-31-09 Michael D. Schrader 01-01-10 to 12-31-10 President of the County Council Thomas Western 01-01-09 to 12-31-09 Kim Wheeler 01-01-10 to 12-31-10-2-
STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E418 INDIANAPOLIS, INDIANA 46204-2769 Telephone: (317) 232-2513 Fax: (317) 232-4711 Web Site: www.in.gov/sboa INDEPENDENT ACCOUNTANT'S REPORT TO: THE OFFICIALS OF WHITLEY COUNTY, INDIANA We have examined the financial information presented herein of Whitley County (County), for the period of January 1, 2009 to December 31, 2009. The County's management is responsible for the financial information presented herein. Our responsibility is to express an opinion based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence supporting the financial information presented herein and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. In our opinion, the financial information referred to above presents fairly, in all material respects, the financial information of the County for the year ended December 31, 2009, based on the criteria set forth in the uniform compliance guidelines established by the Indiana State Board of Accounts. Included in the financial statements are the receipts and disbursements activity from emergency telephone system fees (IC 36-8-16) and enhanced wireless emergency telephone fees (IC 36-8-16.5). In accordance with IC 36-8-16-14 and IC 36-8-16.5-41 these fees have been subject to an annual examination performed by State Board of Accounts and, in our opinion are fairly stated, in all material respects, in relation to the financial statements. The Schedule of Capital Assets and Schedule of Long-Term Debt, as listed in the Table of Contents, are presented for additional analysis and are not required parts of the basic financial information. They have not been subjected to the examination procedures applied to the basic financial information and, accordingly, we express no opinion on them. June 14, 2010 STATE BOARD OF ACCOUNTS -3-
SCHEDULE OF RECEIPTS, DISBURSEMENTS, AND CASH AND INVESTMENT BALANCES ALL GOVERNMENTAL, PROPRIETARY, AND FIDUCIARY FUND TYPES As Of And For The Year Ended December 31, 2009 Cash and Cash and Investments Investments 01-01-09 Receipts Disbursements 12-31-09 Governmental Funds: General $ (510,640) $ 8,345,682 $ 7,708,212 $ 126,830 Accident Report 1,793 2,197 2,723 1,267 Supplemental Adult Probation Services 31,268 76,654 74,390 33,532 Alcohol and Drug Services (31,020) 126,850 128,089 (32,259) Clerk Incentive - 18,076 435 17,641 Clerk's Records Perpetuation 41,307 15,183 6,071 50,419 Community Corrections 27,130 407,639 427,498 7,271 Community Transition 5,188 16,221 19,891 1,518 Credit Card Fees 435 - - 435 Drainage Maintenance 2,857,444 440,550 525,125 2,772,869 Drug Enforcement 17,359 25,870 27,750 15,479 Drug Free Community 65,050 74,684 69,151 70,583 Economic Development Commission 8,702 - - 8,702 EMA/CERT Grant - 975 806 169 Emergency Planning and Right to Know 5,526 4,221 3,491 6,256 Emergency Telephone System 308,109 307,967 352,556 263,520 EMPG Grant - 22,587 22,587 - Employee Disability 2,326 7,000 8,726 600 Family and Children 565,721 50,780 616,500 1 Firearms Training 16,651 17,830 7,380 27,101 Guardian Ad Litem/Court 1,300 3,668 4,968 - Guardian Ad Litem/Court #2-1,450 1,250 200 County Health 61,957 286,717 290,797 57,877 Local Health Maintenance 7,833 20,000 23,447 4,386 County Highway 408,175 2,597,261 2,751,733 253,703 Homeland Security 5,000 9,850 5,000 9,850 Identification Security Protection 6,594 12,508 14,000 5,102 ITPC Grant 37,692-37,692 - Jury Pay (1,407) 57,637 6,209 50,021 Supplemental Juvenile Probation Service 18,955 17,945 20,792 16,108 Law Enforcement Continuing Education 3,250 26,162 21,445 7,967 Law Enforcement Continuing Education - All - 30,483 8,626 21,857 Forfeitures Law Enforcement Excise - 8-8 Local Road and Street 205,685 324,828 363,852 166,661 Medical Care for Inmates 1,815 1,399-3,214 Child Psychiatric Residential Treatment 27,972 61,640 89,612 - County Misdemeanant 20,850 20,749 32,427 9,172 Operation Pull-Over (4,284) - 4,967 (9,251) Personal Property Tax Recovery 336 88 107 317 Pretrial Diversion - 141,778-141,778 Project Income 153,037 443,106 558,167 37,976 Property Reassessment 1,338,154 13,755 59,266 1,292,643 Prosecutor Incentive - 51,249 19,097 32,152 Public Health Coordinator 4,694-1,599 3,095 Rainy Day 1,132,748 1,072,219 680,148 1,524,819 Recorder's Records Perpetuation 29,218 40,647 29,064 40,801 Redevelopment Commission 2,530,159 1,880,571 1,733,962 2,676,768 Riverboat Revenue Sharing - 192,165 192,165 - Sales Disclosure 28,721 3,425-32,146 Senior Citizen Transportation Grant - 106,663 106,663 - Council on Aging - 29,742 29,742 - Sheriff's Commissary 38,948 143,769 155,161 27,556 Supplemental Public Defender Service 75,592 4,397-79,989 Surveyor's Corner Perpetuation 46,756 5,565 4,475 47,846 TGF II 20,396 20,372 20,396 20,372 Tobacco Cessation 13,441 1,739 1,807 13,373 Tobacco Settlement 11,202 13,399 17,531 7,070 Tri Lakes Park 1,208 - - 1,208 Unsafe Building 3,250 1,792 792 4,250 County User Fee 319,870 113,719 243,593 189,996 The accompanying notes are an integral part of the financial information.
SCHEDULE OF RECEIPTS, DISBURSEMENTS, AND CASH AND INVESTMENT BALANCES ALL GOVERNMENTAL, PROPRIETARY, AND FIDUCIARY FUND TYPES As Of And For The Year Ended December 31, 2009 (Continued) Cash and Cash and Investments Investments 01-01-09 Receipts Disbursements 12-31-09 Governmental Funds (continued): Victim Assistance (8,100) 16,322 17,385 (9,163) WIC Grant (2,400) 98,275 95,069 806 Wireless Emergency Telephone System - 69,164-69,164 Youth Improvement 21,837 53,267 59,469 15,635 Government Center Lease 94,705 917,571 725,741 286,535 County Economic Development Income Tax 218,830 942,802 871,672 289,960 Cumulative Bridge 1,594,434 520,129 856,066 1,258,497 Cumulative Capital Development 825,412 450,247 503,692 771,967 General Drain Improvement 191,261 166,633 178,071 179,823 SHSP Races DTL Grant - 1,397 1,397 - H1N1 Public Health Preparedness - 33,316 8,355 24,961 Levy Excess - 437,278 437,278 - Community Corrections Project Income 38,211 576,094 565,859 48,446 Proprietary Fund: Health Insurance 362,504 1,068,323 1,092,098 338,729 Fiduciary Funds: Sheriff's Pension Trust 2,525,393 269,948 127,519 2,667,822 Bioterrorism Preparedness 6,130 13,871 20,001 - Congressional School Principal 17,776-17,776 - EMS Donation 2,507 1,540 840 3,207 Health Donations 12,069 56,761 52,828 16,002 Sheriff Donations 14,619 2,499 9,651 7,467 Adult Offender Interstate 38 113 113 38 County Treasurer 634,160 28,841,801 28,762,078 713,883 CEDIT - Homestead Credit 4,262 217,210 215,065 6,407 Child Restraint Violations 50 513 563 - City and Town Court Cost - 18,493 17,201 1,292 Clerk of the Circuit Court 331,564 3,659,998 3,630,106 361,456 Congressional School Interest 6,630 148 6,778 - Coroner's Training and Continuing Education 439 2,646 2,775 310 Health Department - 89,590 89,590 - County Recorder 10,919 173,807 172,167 12,559 Education Plate Fees - 638 638 - HEA 1001-2008 State Homestead Credit (3,964) 596,773 587,431 5,378 Homestead Credit Rebate - 351 351 - Increment Tax 358 - - 358 Infraction Judgments 11,620 156,282 157,192 10,710 Inheritance Tax 322,746 1,180,197 972,262 530,681 Mortgage Fees State Share 515 4,690 4,823 382 Payroll 44,846 8,294,959 8,290,588 49,217 Planning and Building Department 6,335 73,515 73,852 5,998 Probation Department 7,775 113,812 114,349 7,238 Prosecutor Check Deception 2,929 106,572 104,040 5,461 Prosecutor Office Account 2,809 19,139 20,569 1,379 Prosecutor Restitution 11,875 110,702 108,908 13,669 Seatbelt Violation 65,750 28,850-94,600 County Sheriff 5,636 710,545 713,609 2,572 Sheriff's Inmate Trust 2,396 137,233 137,450 2,179 Special Death Benefit 175 3,074 3,009 240 State Fines and Forfeitures 13,935 96,336 51,078 59,193 State Sales Disclosure Fee 290 3,425 3,295 420 State Share 2008 - Prior - 41,903 41,903 - Surplus Tax 143,194 74,616 96,898 120,912 Tax Sale Surplus 159,108 21,812 141,308 39,612 Tax Distribution 1 29,450,718 29,450,719 - Tax Sale Redemption - 27,165 27,165 - Welfare Trust (1) 1 - - Totals $ 17,663,044 $ 97,666,495 $ 97,170,573 $ 18,158,966 The accompanying notes are an integral part of the financial information.
NOTES TO FINANCIAL INFORMATION Note 1. Introduction The County was established under the laws of the State of Indiana. The County provides the following services: public safety, highways and streets, health and social services, culture and recreation, public improvements, planning and zoning, and general administrative services. Note 2. Fund Accounting The County uses funds to report on its cash and investments and the results of its operations on a cash basis. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. Note 3. Budgets The operating budget is initially prepared and approved at the local level. In addition, funds for which property taxes are levied or highway use taxes are received are subject to final approval by the Indiana Department of Local Government Finance. Note 4. Property Taxes Property taxes levied are collected by the County Treasurer and are distributed to the County in June and December. State statute (IC 6-1.1-17-16) requires the Indiana Department of Local Government Finance to establish property tax rates and levies by February 15. These rates were based upon the preceding year's March 1 (lien date) assessed valuations adjusted for various tax credits. Taxable property is assessed at 100% of the true tax value (determined in accordance with rules and regulations adopted by the Indiana Department of Local Government Finance). Taxes may be paid in two equal installments which become delinquent if not paid by May 10 and November 10, respectively. All property taxes collected by the County Treasurer and available for distribution were distributed to the County on or prior to December 31 of the year collected. Note 5. Deposits and Investments Deposits, made in accordance with Indiana Code 5-13, with financial institutions in the State of Indiana at year end were entirely insured by the Federal Depository Insurance Corporation or by the Indiana Public Deposit Insurance Fund. This includes any deposit accounts issued or offered by a qualifying financial institution. State statute (IC 5-13-9) authorizes the County to invest in securities including, but not limited to, federal government securities, repurchase agreements, and certain money market mutual funds. Certain other statutory restrictions apply to all investments made by local governmental units. -6-
NOTES TO FINANCIAL INFORMATION (Continued) Note 6. Pension Plans Agent Multiple-Employer and Single-Employer Defined Benefit Pension Plans A. Public Employees' Retirement Fund Plan Description The County contributes to the Indiana Public Employees' Retirement Fund (PERF), a defined benefit pension plan. PERF is an agent multiple-employer public employee retirement system, which provides retirement benefits to plan members and beneficiaries. All full-time employees are eligible to participate in the defined benefit plan. State statutes (IC 5-10.2 and 5-10.3) govern, through the PERF Board, most requirements of the system and give the County authority to contribute to the plan. The PERF retirement benefit consists of the pension provided by employer contributions plus an annuity provided by the member's annuity savings account. The annuity savings account consists of member's contributions, set by state statute at 3% of compensation, plus the interest credited to the member's account. The employer may elect to make the contributions on behalf of the member. PERF administers the plan and issues a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole and for its participants. The report may be obtained by contacting: Public Employees' Retirement Fund Harrison Building, Room 800 143 West Market Street Indianapolis, IN 46204 Ph. (317) 233-4162 Funding Policy and Annual Pension Cost The contribution requirements of plan members for PERF are established by the Board of Trustees of PERF. B. County Police Retirement Plan Plan Description The County contributes to the County Police Retirement Plan, which is a single-employer defined benefit pension plan. With the approval of the County's fiscal body, the plan is administered by the sheriff's department and an appointed trustee as authorized by state statute (IC 36-8-10-12) for full-time police officers. The plan provides retirement, death, and disability benefits to plan members and beneficiaries. The trustee issues a publicly available financial report that includes financial statements and required supplementary information of the plan. The report may be obtained by contacting the county sheriff. Funding Policy and Annual Pension Cost The contribution requirements of plan members for the County Police Retirement Plan are established by state statute. -7-
NOTES TO FINANCIAL INFORMATION (Continued) C. County Police Benefit Plan Plan Description The County contributes to the County Police Benefit Plan which is a single-employer defined benefit pension plan. With the approval of the County's fiscal body, the plan is administered by the sheriff's department and an appointed trustee as authorized by state statute (IC 36-8-10-12) for full-time police officers. The plan provides dependent pensions, life insurance, and disability benefits to plan members and beneficiaries. The trustee issues a publicly available financial report that includes financial statements and required supplementary information of the plan. The report may be obtained by contacting the county sheriff. Funding Policy and Annual Pension Cost The contribution requirements of plan members for the County Police Benefit Plan are established by state statute. -8-
SUPPLEMENTARY INFORMATION SCHEDULE OF CAPITAL ASSETS December 31, 2009 Capital assets are reported at actual or estimated historical cost based on appraisals or deflated current replacement cost. Contributed or donated assets are reported at estimated fair value at the time received. General infrastructure assets (those reported by governmental activities) are included regardless of their acquisition date or amount. The government was able to estimate the historical cost for the initial reporting of these assets through backtrending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). As the government constructs or acquires additional capital assets each period, including infrastructure assets, they are reported at historical cost. Primary Government Ending Balance Governmental activities: Capital assets, not being depreciated: Land $ 147,016 Infrastructure 26,768,093 Buildings 10,975,925 Improvements other than buildings 129,180 Machinery and equipment 4,248,353 Total governmental activities, capital assets not being depreciated $ 42,268,567-9-
SUPPLEMENTARY INFORMATION SCHEDULE OF LONG-TERM DEBT December 31, 2009 Principal and Ending Interest Due Principal Within One Description of Debt Balance Year Governmental activities: Capital leases: Government Center $ 5,520,000 $ 273,500-10-
OTHER REPORT The report presented herein was prepared in addition to the official report prepared for the County Auditor. -11-
EXIT CONFERENCE The contents of this report were discussed on June 14, 2010, with Linda J. Gerig, Auditor; Kim Wheeler, President of the County Council; and Michael D. Schrader, President of the Board of County Commissioners. -12-